New Currency of Iran Brings Economic Change

The new currency of Iran has brought about significant economic change. The Rial, Iran's official currency, has undergone a major overhaul.

In 2021, the Iranian government introduced the new currency, which has a different design and security features. This change was aimed at reducing counterfeiting and improving the currency's overall quality.

The new currency has also been linked to the country's efforts to reduce inflation and stabilize the economy. By introducing a more secure and reliable currency, the government hopes to boost consumer confidence and encourage economic growth.

The Iranian central bank is aware of the potential dangers of a digital rial, including its impact on citizens' privacy.

One of the main concerns is that anonymity in the digital rial could add to money-laundering concerns.

Selecting an optimal balance between privacy and security is a major consideration in developing the digital rial.

Iranian authorities already have significant supervision capabilities through online banking and tax record-keeping systems, and a digital rial could further expand these capabilities.

The digital rial could potentially be used to restrict or block financial transactions based on citizens' activities, as Hamed Salehi, a researcher, warned.

Iran's pervasive problem with malicious software could also put the digital rial app at risk of hacking, allowing hackers to access and control citizens' finances.

The digital rial could be a game-changer for Iran's economy, potentially helping to tame inflation, which currently stands at over 40 percent.

A lack of financial discipline has led to unchecked money printing, resulting in perennial budget deficits. This has been a major factor behind Iran's runaway inflation for decades.

If implemented correctly, the digital rial could help prevent inflation in the digital sector. However, this would require preventing the digital rial from being used to allocate loans and credits, which would increase the amount of digital rials in circulation.

Loans are indeed part of the process, according to Mehran Mahramian, Vice Governor for New Technologies at the central bank. He believes the digital rial could help ensure that loans are invested where they are meant to be.

However, Nima Amirshekari, an electronic banking expert, warns that the same issues causing non-performing loans could affect the digital rial. Powerful individuals or organizations could refrain from repaying their digital rial loans, just as they do with traditional loans.

The digital rial project could also increase the central bank's knowledge and expertise on global cryptocurrencies. This could have a positive impact on its regulatory stance, potentially leading to more effective and useful regulations.

The government of Iran has taken steps to stabilize the economy and reduce inflation. The Central Bank of Iran has been working to manage the money supply and control inflation.

The government has also implemented policies to encourage the use of digital currencies. The use of digital currencies has been increasing in Iran, with some businesses and individuals adopting it as a form of payment.

The Central Bank of Iran has issued its own digital currency, which is called the "Digital Rial". This currency is designed to be used alongside the traditional Iranian Rial.

Check this out: Ancient Currencies